Economic conditions

In 2015–16, Australia celebrated 25 years of consecutive economic growth, second only to the Netherlands. Given the recent challenging international conditions, this is a remarkable achievement.

Other advanced economies have struggled to return to pre-Global Financial Crisis levels of growth, with lower growth in China and growing unease about the benefits of globalisation.

In contrast, Australia saw strong domestic economic growth in 2015–16, along with a lower unemployment rate indicating a successful transition away from the mining investment boom.

However, underneath these headline indicators lie risks to our economy, such as continuing poor business investment, slow wages growth, and mixed labour market conditions. The chapter examines the data behind these trends.

This chapter also presents performance data across industry sectors, showing areas that are in decline, and others that continue to grow. For example, the highest and lowest growth rates in output in 2015–16 were in Mining and Manufacturing, respectively. The chapter also presents highlights that have occurred in Australian industries over the past year.

In totality, the chapter paints a picture of where Australia stood economically in 2015–16, and our economic trajectory for the near future.